Equity Loan with Bad Credit
Many of us have less-than-perfect credit
scores. If you’ve been turned down after trying to obtain an equity loan with bad credit
, or a mortgage
at your bank, you know how devastating that can feel. However, banks are bound
by rigid regulations that require clients to meet various criteria before they
can be allowed to access financing. The risk-adverse nature of major financial
institutions means that any kind of red flag on a credit report, from an unpaid
tax bill to a past bankruptcy, can result in your application being rejected.
However, private lenders
are more willing to
overlook a client’s credit history, as long as he or she has sufficient equity
in a home. Most private lenders will finance a short-term loan or mortgage
using the client’s home equity as collateral. This means that obtaining an equity loan with bad credit is possible!
These loans often have higher interest rates than
comparable loans from banks, but not always. In order to access a private
mortgage or loan, it’s best to work with a private mortgage broker. A broker
will assess your application and put together a package that will be attractive
to investors. He or she can often match a borrower with a compatible lender
quickly, providing the client with necessary cash flow without delay.
Bad credit ratings do not have to limit your
access to financing. Consult a private mortgage broker to learn more about the
options available to you.